Polymarket Seeks CFTC Approval to Reopen US Operations

Polymarket is reportedly seeking Commodity Futures Trading Commission (CFTC) approval to relaunch its main prediction market for US users. According to sources, the company has been in discussions with CFTC officials to lift the ban on US-based traders, which was imposed after a 2022 settlement. The CFTC had previously approved a separate US-only Polymarket platform, but it has yet to be fully launched. Prediction markets, which allow users to trade contracts tied to future events, have faced increased scrutiny from states claiming they operate as unlicensed gambling operations. The CFTC would need to vote to remove the US block, a process potentially simplified by the current vacancy of four commission seats, leaving Chairman Michael Selig as the sole sitting commissioner. Selig has previously argued that states lack the authority to regulate prediction markets, which fall under the CFTC's jurisdiction. The development comes after an incident where a soldier allegedly used a VPN to access Polymarket's international exchange, making over $400,000 from trades based on classified information. Polymarket has declined to comment on the matter.